Shell has begun the “nightmare” task of extricating itself from its biggest Russian energy project as China’s state-owned companies line up as the only current option for western oil and gas majors divesting Russian assets that much of the world will not touch.
The UK-headquartered group is in “early stage negotiations” with Cnooc, CNPC and Sinopec over the sale of its 27.5 per cent stake in the Sakhalin-2 liquefied natural gas project, according to two people familiar with the matter.
Shell pledged to withdraw from its Russian investments in February after President Vladimir Putin’s invasion but has not said whether it will seek to sell the stake or just walk away.
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